Thus, Stellantis collapsed on the stock market this Monday, September 30. The firm has just announced that it is counting on a current operating margin of between 5.5 and 7% in 2024. Even though forecasts previously indicated a margin of no less than 10%. Almost double!
Other bad news: Stellantis anticipates a loss of five to 10 billion euros. This whereas before these announcements, she planned to end the year on a positive note. Enough to impact the company’s price on the stock market. Indeed, with these announcements, Stellantis shares lost no less than 14% around 10:10 a.m. this Monday, to €12.5, according to BFM Bourse.
Sell off American stocks
These difficulties are explained in particular by the fact that the Stellantis machine is blocked in the United States. Sales are slowing and the company has a colossal stock of cars to sell. It wants to reduce its stocks by 330,000 units at dealers at the end of 2024. Previously, this was planned for the beginning of 2025.
Stellantis justifies the rest of its announcements by “the deterioration of the automotive context”. The 2024 market forecast is down, compared to the start of the year. Sales will therefore be lower than expected “in most regions,” explains the company. This “even though competition has intensified due to the increase in supply and increased Chinese competition”.
Will Carlos Tavares see the end?
These announcements come just a few days after Stellantis’ announcement of the preparation of the succession of Carlos Tavares. The company’s current CEO will conclude his mandate at the end of 2026. His replacement is not yet certain and Stellantis reminded that it is normal to prepare a possible succession in advance…
Except that this succession preparation is being done very early, more than a year before the end of Tavares’ mandate. The company is also in difficulty and John Elkann, boss of Stellantis (and also of Ferrari), seems annoyed by this situation, according to what Bloomberg reported. A bad omen for Tavares?
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To summarize
Red alert at Stellantis! The results are no longer good at all. The company could suffer a serious setback in 2024, after years of reaching the heights of the automobile industry, posting margins close to luxury firms like Porsche. The beginning of the end for Carlos Tavares, CEO of the company?
